The budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December 2016.

a. Estimated sales for December:

Bird house 3,200 units at $50 per unit
Bird feeder 3,000 units at $70 per unit
b. Estimated inventories at December 1:

Direct materials Finished products
Wood 200ft Bird House 320 units at 427 per unit
Plastic 240 lbs. Bird feeder 270 units at $40 per unit
c. Desired inventories at December 31:

Direct materials Finished products
Wood 220 ft. Bird house 290 units at $27 per unit
Plastic 200 lbs. Bird feeder 250 units at 441 per unit
d. Direct materials used in production:

In manufacture of bird house In manufacture of bird feeder
Wood 0.80ft. per unit of producct Wood 1.20 ft. per unit of product
Plastic 0.50 lb. per unit of product Plastic 0.75 lb. per unit of product
e. Anticipated cost of purchases and beginning and ending inventory of direct materials:

Wood $7.00 per ft. Platsic $1.00 per lb.
f. Direct labor required:

Bird House
Fabrication Depratment 0.20 hr. at $16 per hr.
Assembly Depratment 0.30 hr. at $12 per hr.
Bird Feeder
Fabrication Depratment 0.40 hr. at $16 per hr.
Assembly Depratment 0.35 hr. at $12 per hr.
g. Estimated factory overheads

Indirect factory wages $75,000 Power and light $6,000
Depreciation of plant and equipment 23,000 Insurance and property tax 5,000
h. Estimated operating expenses for December:

Sales salaries expense $70,000
Advertising expense 18,000
Office salaries expense 21,000
Depreciation expense - office equipment 600
Telephone expense - selling 550
Telephone expense - administrative 250
Travel expense - selling 4,000
Office supplies expense 200
Miscellaneous administrative expense 400
i. Estimated other income and expense for December:

Interest revenue $200
Interest expense 122
j. Estimated tax rate: 30%

Required

Prepare a budgeted income statement.